Question
Before the withdrawal (in million dollars) After the withdrawal (in million dollars) Assets Liabilities/ Equity Assets Liabilities/ Equity Cash assets 20 Deposits 90 Cash assets
Before the withdrawal (in million dollars) | After the withdrawal (in million dollars) | |||||||
Assets | Liabilities/ Equity | Assets | Liabilities/ Equity | |||||
Cash assets | 20 | Deposits | 90 | Cash assets | 0 | Deposits | 60 | |
Nonliquid assets | 80 | Equity | 10 | Nonliquid assets | 65 | Equity | 5 | |
100 | 100 | 65 | 65 |
Assuming no other changes to liabilities except for the withdrawal and a zero reserve requirement ratio, according to the balance sheet before and after withdrawal given above, ____________ of deposits was withdrawn. To meet that deposit withdrawal, the bank had to liquidate ____________ cash assets and ____________ of nonliquid assets at a fire sale price of ___________.
$30 million; $20 million; $15 million; $10 million
$15 million; $10 million; $5 million; $10 million
$30 million; $10 million; $15 million; $20 million
$15 million; $10 million; $10 million; $5 million
$30 million; $20 million; $15 million; $5 million
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